(NLRC), when the amendatory legislation expanding its jurisdiction, and removing overseas employment related claims from the ambit of POEA jurisdiction. The case was then raffled to Labor Arbiter, Vladimir Sampang. xxxxxxxxx After considering the pleadings and evidences, on July 8, 1997, the Labor Arbiter Vladimir P. L. Sampang, in conformity with petitioners plea to hold respondents solidarily liable, granted all the damages, (plus legal interest), as prayed for by the petitioner. The dispositive portion of his Decision reads: WHEREFORE, premises considered, the respondents are hereby ordered to jointly and solidarily pay complainants the following: 1. US$176,400.00 (US$2,100.00 x 12 months x 7 years) or P4,586,400.00 (at P26.00 per US$1.00) by way of lost income; 2. interest at the legal rate of six percent (6%) per annum or P1,238,328.00 (from November 1992 to May 1997 or 4 years); 3. moral damages of P200,000.00; 4. exemplary damages of P100,000.00; and 5. 10% of the total award, or P612,472.80, as attorneys fees. xxxxxxxxx On appeal, private respondents raised before the National Labor Relations Commission (NLRC) the following grounds: (a) the action before the Arbiter, as he himself concedes, is a complaint based on torts due to negligence. It is the regular courts of law which have jurisdiction over the action; (b) Labor Arbiters have jurisdiction over claims for damages arising from employer-employee relationship (Art. 217, Section (a) (3)); (c) In this case, gross negligence is imputed to respondents Garate and Asis, who have no employer-employee relationship with the late Capt. Virgilio Tolosa; (d) The labor arbiter has no jurisdiction over the controversy;

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